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How War Has Prepared Today's Veterans for Startups and Small Businesses

This article is by Nick Padlo, the managing partner of Graycourt Capital and a former captain in the U.S. Army.

Employers and headhunters typically describe military veterans as hard-chargers who can lead teams and execute plans in large, process-driven companies. But that misses something—how veterans also tend to be creative thinkers who thrive in uncertain conditions, such as those found in startups and small businesses. Veterans are increasingly joining small businesses, launching nonprofit organizations, and founding companies.

Why is this happening? Today’s young veterans have experienced a unique style of war, a counterinsurgency with an ambiguous enemy and a dynamic battlefield. Here are four wartime lessons that are preparing them for entrepreneurship:

1. Team culture aligns an organization, and the foundations are built from day one. “Nec Aspera Terrent” loosely translates to “No Fear on Earth.” That is the Wolfhounds’ battalion motto. As a freshly-minted lieutenant, the Wolfhounds was my first unit. Upon arrival, each soldier (including officers) embarked on a month of testing for cultural fit and physical fitness before earning the right to be a Wolfhound. From onboarding to the crucible of war, the Wolfhounds were fervently aligned toward a common purpose. We truly believed we were the best battalion in the Army, and that belief drove our performance each day. Soldiers in myriad units across the Army believe the same thing.

Of course, the strength of war-forged bonds is difficult to duplicate in business, but it is possible. It requires a thoughtful approach from day one and a consistent application throughout the organization. If my next company is half as passionate as the Wolfhounds, it will be a heck of a place to work.

2. Junior soldiers can handle significant responsibility and take ownership. When our 12-man team, average age 26, arrived to train the New Iraqi Army, we faced significant uncertainty. We had been assigned to train senior Iraqi Officers with more wartime experience, across a cultural and language barrier, and reports indicated that some of the Iraqi soldiers wanted to kill us. Nonetheless, each soldier developed a plan to motivate and train his Iraqi counterparts. By the end of our 15-month deployment, we had attained our ultimate goal: The Iraqi unit was able to competently and confidently secure its own villages.

Junior military leaders assume considerable responsibility in uncertain environments, just as do entrepreneurs within our startups. We need all team members to take ownership, remain flexible, and press forward with limited guidance.

3. The first step in any campaign is understanding your key constituents. Our battalion commander in Afghanistan had a catchphrase: “It’s the people, stupid.” He realized that Afghanistan’s citizens were the key stakeholders in the War on Terror. As a result, we spent our time in villages, working to truly understand their people. If we addressed their needs, we would ultimately gain their support.

Similarly, entrepreneurial organizations rely on constant, intense immersion in the minds of their customers. This is evident in today’s most successful consumer-oriented e-commerce start-ups. From Zappos to Bonobos, successful companies place a tireless emphasis on the customer. You cannot win a war from the operating base, and you cannot win over your customers from the boardroom.

4. Effective leadership is highly compassionate. Civilians often assume that military leadership is driven by rigid subservience to rank, but that couldn’t be further from the truth. As Civil War General John Schofield said, “Harsh or tyrannical treatment . . . is far more likely to destroy than to make an army.” Military leaders must listen to their direct reports and place their soldiers before themselves. One day, a leader may ask a soldier to risk his life in combat, going against every human instinct. At such a moment, rank doesn’t matter. Does the soldier trust him? Love him?

Entrepreneurs will not send employees into combat, of course, but that kind of strong leadership remains just as important. Employees in small businesses do not exist on a spreadsheet; they are the life of the company. If you can inspire them, winning their trust and love, then your business can become exponentially more powerful.

Today, veterans are entering the workforce in record numbers, and I hope many of them will continue to pursue entrepreneurship. In addition, I hope investors and small business CEOs will recognize their potential in former soldiers.

The marriage may not be seamless. Veterans have to make a transition into civilian life. From learning basic business language to adjusting our personal leadership style, we often require coaching and feedback. I have no doubt, however, that this generation of veterans is rising to the challenge to help build great companies. Our experiences in Afghanistan and Iraq have trained creative, adaptive, and dynamic veterans who can find their new mission in entrepreneurship.

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Agree completely. Thank you for pointing out the distinction. The word officer was added during editing, and I have submitted a correction. I strongly believe in the concept of the “strategic corporal.” From the junior enlisted ranks, all the way through the most senior officers, many Veterans are developing the skills to make it as entrepreneurs.

Yes agree. I worked for the Air Force Small Business Program which promoted the use of veteran owned small business. It is a very tight knit community. When you get a chance, visit http://www.veterantrainingsymposium.com. Our annual VETS is focus on education and training for veteran business owners.

I am pleased to see that Captain Padlo thinks about his training as an Army officer and his service in a combat zone in the same way as many of us who were junior officers in the Vietnam War. I wrote about my experience as an Army officer in that long ago war, using almost the same words expressed by Mr. Padlo is this very fine article. The link to the article is as follows:

http://pauldillon.com/articles/what-dan-quayle-missed/

Also, I noted how veterans make great entrepreneurs in a recent op-ed piece that I wrote for our local Chicago business publication. The link to that article is as follows:

Excellent article. This very idea of veteran entrepreneurs has been on my mind a lot. As a teacher of Economics in a high school I’ve counseled graduating seniors that their challenge ahead may involve creating a job more than ‘getting’ a job. I think the next generation will need to think that way, and I like the way you point out that there are veterans leading the way in this area. From pointing out the traits that serve veterans well in starting/running a business, to acknowledging that it’s not a perfect fit, this is a timely and thorough piece. Thanks, Nick.